This is a more even playing field however there is still one big issue with this. Nearly no one pays attention to who they are voting for and what they are up to. Instead they just stake and collect their rewards.

Is this a problem with the system or the individuals involved in it?

Sadly, people need to partake in what they are involved with. That is an age old idea. While it might not be novel, it does solve the problem.

People need to pay attention to what is going on. Perhaps when they lose some money due to poor decisions by those they voted for, they will learn.

All the technology in the world seems not to be able to compensate for flaws in human nature.